Canadian Company CGX to Begin Drilling for Oil by Year End


GEORGETOWN, Guyana – The Guyana government says the Canadian-based oil and gas exploration company, CGX Energy, will begin drilling on the Corentyne block at the end of this year.

CGX Energy is focused on the exploration of oil in the Guyana-Suriname Basin, and it has already appointed a drilling engineer who will be in charge of designing its offshore exploration well on the Corentyne Block offshore Guyana.

“CGX has remained committed to Guyana, they have gone through different periods and we are hoping that we could work with them. They are expected to do some drilling this year and we are excited about that,” said Natural Resources Minister Raphael Trotman, adding that the David Granger administration is excited about the project.

“The expectation is that they begin drilling by the end of the year. We also have (Spanish-based) Repsol that will also do some drilling later in the year or early next year,” Trotman added.

In late 2017, CGX had said as part of the renegotiation of its contract, it would relinquish 25 per cent of the acreage of both the Corentyne and Demerara blocks to the government.

The new work commitments include drilling an exploration well on the Corentyne Block by November 27, 2019; acquire additional seismic or conduct seismic reprocessing by November 27, 2020; drill an exploration well by November 27, 2022 in the Demerara Block and complete any additional data processing and planning.

It will also include securing all regulatory approvals for the drilling of an exploration well by February 12, 2020; drill an exploration well by February 12, 2021 and another by February 12, 2023 in the Berbice Block as well as complete a geochemical survey of a minimum area of 120 square kilometers by February 12, 2020.

CGX chairman, Professor Suresh Narine said the company was eager to pursue the new work commitments in “this exciting Guyana basin, and in so doing continue our unbroken commitment to the basin, the Guyanese people and its Government for more than 18 years.” – CMC